On Friday, March 21, the company announced that the $12.4-billion acquisition of the pharmacy giant is expected to close March 28.

The move was approved on the condition that Loblaw, headquartered at 1 Presidents Choice Cir. in Brampton, sell 18 stores and nine pharmacies. The closures are mainly outside Greater Toronto.

“This merger uniquely positions Loblaw to meet the most important consumer trends in the country, including urbanization and health and wellness,” said Galen G. Weston, Loblaw Executive Chairman. “In doing so, we will continue to deliver more choice, more value, and more convenience to Canadians.”

The Competition Bureau cited several concerns about the transaction. In its review of the proposed transaction, the bureau found that the takeover of Shoppers “would likely result in a substantial lessening or prevention of competition in the retail sale of pharmacy products and drugstore-type merchandise in Canada, and in respect of certain Loblaw programs and agreements with suppliers.”

It also said it was made aware of certain conduct by Loblaw, with respect to its suppliers, that could raise concerns under the Competition Act. “Namely, that the proposed transaction would likely lead to higher wholesale prices paid by other retailers to suppliers and, in other circumstances, higher retail prices for consumers.”

The bureau said it will “continue to investigate Loblaw programs, agreements and conduct related to pricing strategies and programs with suppliers that reference rivals’ price.”

Loblaw said the company will co-operate with the Competition Bureau in its continued review of these practices.”